Chancellor George Osborne Delivers Budget

George Osborne is unveiling his Budget in which he is expected to warn that the UK economy is strong "but the storm clouds are gathering again".

The Chancellor has insisted the economic plan he is outlining to Parliament "sets out long-term solutions to long-term problems".

Mr Osborne is delivering his eighth Budget against a slowdown in the world economy that's costing the Treasury billions of pounds in lost tax receipts and the upcoming EU referendum on 23 June.

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As a result of the worsening economic forecast, he has to find another £4bn in "austerity" savings if he is to meet his own target of clearing the deficit and balancing the nation's books by the next General Election in 2020.

It (Other OTC: ITGL - news) has raised speculation of rises in fuel duty and the insurance premium tax in a bid to get the public finances back on track.

Mr Osborne is set to tell MPs: "Our economy is strong, but the storm clouds are gathering again.

"Our response to this new challenge is clear. A Budget where we act now so we don't pay later.

"In this Budget we choose the long term. We choose to put the next generation first."

A number of announcements have been trailed ahead of the Budget, including government backing for major rail projects in the North of England and London and plans for schools in England to stay open for longer each day.

However, it is his approach to public spending cuts that is set to be the focus of attention.

:: Watch George Osborne's Budget live on Sky (LSE: BSY.L - news) channel 501, Virgin Media channel 602, Freeview channel 132, and Freesat channel 202.